Exam 20: Introduction to Macroeconomics

In the circular flow diagram, the different payments made by firms to households include

Expansionary fiscal policy includes raising taxes.

The portion of a corporation's profits that a firm pays out each period to its shareholders is a

Which of the following is a correct statement?

Since 1994, the average annual inflation rate in the U.S. has been greater than 8 percent.

Unemployment generally rises during ________ and falls during ________.

A promissory note issued by a corporation when it borrows money is a

The concept of "market clearing" is adopted and defended by

Unemployment generally ________ during recessions and ________ during expansions.

An example of a transfer payment is

The employment rate equals

If the labor force is 500 and employment is 450, then the unemployment rate is

The period in the business cycle from a ________ to a ________ is called an expansion.

Related to the Economics in Practice on p. 418: F. Scott Fitzgerald's The Great Gatsby is set in the 1920s. During the 1920s, the U.S. economy was primarily in which phase of the business cycle?

Eddie purchased an autographed Kobe Bryant basketball when he was 17 years old for a total cost of $200 and then sold the basketball 4 years later for $700. Due to these transactions

The demanders in the goods-and-services market are

In the Classical model, the level of employment is determined by the level of aggregate supply.

Fiscal policies are government policies regarding ________ and ________.

The employment rate is the number of people employed divided by number of people in the population.

Starting with the Great Depression, macroeconomic policies became more influenced by